AI Revolution at India’s Doorstep: $500 Billion Opportunity or Looming Inequality?

India is on the verge of a major transformation, with artificial intelligence (AI) poised to reshape its economy, job market, and global standing. A new research report by Acuité Ratings & Research, titled "Artificial Intelligence: India’s Strategic Opportunity," highlights the enormous potential of AI to contribute nearly $500 billion to India’s GDP by 2035.

But the promise comes with a warning: without timely action, India risks deepening its digital divide and displacing millions of workers.

Once limited to research labs, AI is now set to revolutionize every aspect of life — from healthcare and education to agriculture and finance. For a digitally connected yet economically diverse nation like India, the stakes couldn’t be higher.

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Pros and Cons of AI Adoption

The report presents a dual narrative — one of opportunity and one of disruption. On the positive side, AI can help India tackle persistent service delivery challenges. In healthcare, for example, AI-powered diagnostic tools could ease the shortage of doctors in rural areas. In agriculture, machine learning can support smallholder farmers by improving crop management and mitigating climate risks. Personalized learning platforms also offer the potential to bridge gaps in educational access and quality.

However, the report also warns of serious downsides. As AI takes over routine and repetitive tasks, jobs in sectors such as IT services, finance, and back-office operations may be particularly vulnerable. Acuité estimates that nearly 40% of work hours in India could be automated by 2030 — putting over 200 million jobs at risk. Clerical and administrative roles, which employ nearly 90 million Indians, face the highest exposure.

Global Race, Local Stakes

On the global stage, AI is reshaping the economic landscape. Countries that embrace the technology early are expected to grow 1.5–3% faster annually than those that lag behind, potentially widening global inequalities. Moreover, automation is reversing the offshoring trend, with manufacturers turning to AI and robotics to localize production — a shift that threatens the traditional labour cost advantages of countries like India.

The Way Forward

To fully tap into AI’s potential, India must act swiftly and decisively. The report recommends a comprehensive approach: scaling up computing infrastructure, boosting research and development, and re-skilling 15–20 million workers each year. It also calls for intelligent regulation — one that protects consumers and data privacy without stifling innovation.